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| Provided to you Exclusively by Laure Feld |
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For the Month of January 2008 --- Vol. 3, Issue 1
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IN THIS ISSUE...  |
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| HAPPY 2008! The new year
always feels full of potential and opportunity. It's as if the
slate has been wiped clean and anything is possible. As most of us are setting goals and making resolutions, now's the ideal time to make sure you're making sound money decisions in 2008. For instance, the article below can help you make healthier financial decisions for you and your family. In addition, the retirement saving tips below can help you make sure you're prepared for all of the new years to come! As always, feel free to forward this issue to friends, family members, or coworkers to help them kick off their new year! And please call or e-mail if you need any personal assistance during this special time of year! |
| MAKING HEALTHY FINANCIAL DECISIONS |
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While we all hope that we never have to deal with a sudden medical crisis caused by the discovery of a life-threatening or life-altering illness the reality is that at some point, many of us will have to face this situation. As they say, life is a terminal condition. Good health is a gift that is often taken for granted, but when you are healthy is also the very best time to take a few simple steps to insure that you and your family, income and assets would be protected in case the worst would happen. A stat that "will" surprise you: Did you know that less than 10% of all adult Americans have a will? Amazing, because it is one of the most important documents you will ever create, especially if you have children. In addition to your will, it is advisable to create Power-of-Attorney's to allow someone you trust to be able to make financial decisions or pay bills on your behalf if you are not able to do so yourself. Also consider creating a living will, outlining the types of treatments that you would want or not want to have performed. Typically a living will is accompanied by a health care proxy, which is a Power-of-Attorney specifically for making medical decisions. Emergency fund: There are dozens of reasons that it is important to build up a nest egg of cash, but one of the most important is to help protect against the loss of income that can occur during a medical crisis. Rarely considered for couples who both work, but worth mentioning, is that during a medical emergency, not only would the ill individual be out of work, but oftentimes the other would also have lowered income due to spending time and energy with the sick partner. Throw me a line: A Home Equity Line of Credit (HELOC) can be another great safety net to consider, as it allows you easy and immediate access to a relatively cheap source of money. It is important to remember that your ability to qualify for a new loan may be diminished if you are critically ill, so obtaining a HELOC when you do not need it is a very good idea. And since HELOC's are typically inexpensive to set up, and only require payments if there is a balance owed, this makes it an ideal safety net. "Insure" your safe future: Life insurance is rarely considered a popular discussion topic, but it is a very important way to protect your family. Dealing with the loss of a loved one is very difficult and there is no easy way to ease the pain. And the financial problems, although secondary, can be very serious. Loss of home, income, and savings can all be avoided with the right life insurance plan. Other types of insurance to investigate are disability insurance - which can help provide income if you are unable to work because of an injury or illness - and also long-term care, which can help you preserve your assets from being eaten up by caretakers in the future. If you need help setting up a Home Equity Line or a referral to a great financial planner or insurance agent, please email or give me a call. I'd be happy to help you make the connections needed to ensure your own healthy financial future. |
| DID YOU KNOW... |
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That if you wait until you're 45 years old to start investing for retirement, you'll need to save about $24,000 per year just to reach a reasonably comfortable retirement level? But if you start when you're 25, you can reach that same level by saving just $4,000 per year. So starting as early as possible is important - but even if you didn't, you can use the simple tips below to get on track right away. Give Your Retirement Plan a Raise The more you make the more you spend...so the next time you get a raise or a bonus, break the cycle! Set aside that extra money and invest it in your future. You will not even notice it now...but you will in the long run. Make a Big Impact Without Denting Your Budget If you're about to pay off a car, student loan, or some other monthly expense, you can make a huge impact on your investment plans by simply adding that extra money to your retirement account. You're already used to living without it, so it won't impact your monthly spending money at all. Out of Sight, Out of Mind Investing Don't forget to make your investments automatic. It's much easier--and a lot less painful--to have that money simply deducted from your paycheck and electronically deposited. You'll save the same amount every month...and save yourself the trouble of writing that check! Eliminate High Rates Want to earn a 17%, 18% or even 19% return right away? It's easy...put together a plan to pay off your credit cards faster, starting with the highest rates. By paying it off quickly--and keeping it paid off--you'll eliminate the high interest charges that drain budgets and often put people into a downward spiral of debt. Make the Most of Matching Contributions If you have access to a 401(k) retirement plan, make sure you are using it--especially if you get matching contributions from your employer. See how much you have to contribute to earn the full matching amount from your employer - and if you can't contribute that much right away, start small and steadily increase your contribution over time until you reach it. You'll double your money with the employer's match...and your contributions are generally taken out of your check pre-tax. It's NOT All or Nothing Don't feel like you have to jump in with everything you've got. The most important point is to get started right away...not next month or next year, but right now with whatever amount you can. You can always increase the amount you invest...but you can never get back the compounding interest you'll lose by waiting. And remember, if you have any questions--including how a mortgage can be structured to jumpstart your retirement plan or a recommendation to a great financial planner--please don't hesitate to call! |
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